Oaktree seals Nordenia sale to Mondi at 6.6x EBITDA


Oaktree Capital Management has exited its six-year investment in packaging company Nordenia through a deal that values the company at €655m.

Although Oaktree’s return on the investment was not disclosed the enterprise value represents 6.6 times the German company’s 2011 EBITDA.

Purchaser Mondi Group, an international paper and packaging business, said it paid €240m in cash for 93.4 per cent of the company, and assumed €398m of debt and similar liabilities.

Nordenia manufactures packaging for a string of industries including food and drink, automotive and pet care through a dozen facilities in seven countries across Europe, North America and Asia.

It had EBITDA of €99m as of December 2011, with hygiene components contributing about 40 per cent of its revenues, and gross assets of €504m.

Oaktree said the exit was made from more than one of its distressed debt funds, but did not specify which ones.

Its $1.773bn OCM Opportunities Fund VI raised just before the Nordenia deal was completed had an IRR of 8.48 per cent and value multiple of 1.5 times at the start of 2012, according to data from the Washington State Investment Board.

Oaktree was believed to be interested in selling the business in 2010, with bidders at the time said to include TPG Capital, Triton, and Sun Capital Partners.

Mondi Group chief executive David Hathorn said, “The acquisition of Nordenia offers Mondi Group a unique opportunity to create a leading consumer packaging business, build on long term customer relationships across both businesses and establish a platform to expand further in high-growth emerging markets.”

Copyright © 2012 AltAssets